If you work for a municipal or state government, you are probably well aware of the issues facing government pensions. Many states and cities are facing potentially huge shortfalls in pension plan funding that will most likely reach into the billions. While these shortfalls will have the biggest impact on workers who are far from retirement, they will also affect those already in retirement as well as those getting very close to retirement. The governments facing the biggest shortfalls are already discussing ways to make up for the shortfalls, including limiting benefit amounts, eliminating post-retirement health insurance, and cutting back on spousal benefits. So, if you are a state or municipal government employee, what can you do to protect yourself? Well, the easy answer is to save enough so that you don’t need to rely on a government pension. However, for many government employees, that’s not a possibility and furthermore, they’ve made contributions throughout their careers and thus should rightfully get some of that money back to help with retirement costs. If you are a government employee and unsure of whether your pension will be enough to help with retirement, you will want to strongly consider having a secondary source of income to help get you through retirement or balance out any changes that may occur with your pension in retirement. If you are years away from retirement, you will want to pay attention to any changes that occur to your pension and plan accordingly. Government pensions could be a big retirement talking point in the coming years and decade, so pay attention closely.